Last close As at 05/08/2026
NZD4.75
▲ −0.03 (−0.63%)
Market capitalisation
NZD499m
Research: Healthcare
AFT Pharmaceuticals continues to make inroads in expanding its strategic market footprint. Most recently, it announced the entry into China with the distribution of Crystaderm (approved by Chinese regulators in November 2023) through an agreement with Hainan Haiyao Co. We expect this to provide AFT with access to China’s offline retail and hospital segments, which represent roughly 75% of the country’s OTC market, a significant bump from AFT’s current Chinese e-commerce presence. This announcement comes on the heels of the news on Maxigesic Rapid securing a non-exclusive distribution partnership in the US with Alexso, a specialist distributor focused on non-opioid pain-management products. Given the notable size of both the US and Chinese markets, we expect these new market launches (both expected within CY24) to support top-line traction internationally.
Written by
AFT Pharmaceuticals |
Continued execution of footprint expansion |
Commercial update |
Pharma and biotech |
10 July 2024 |
Share price performance
Business description
Analysts
AFT Pharmaceuticals is a research client of Edison Investment Research Limited |
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AFT Pharmaceuticals continues to make inroads in expanding its strategic market footprint. Most recently, it announced the entry into China with the distribution of Crystaderm (approved by Chinese regulators in November 2023) through an agreement with Hainan Haiyao Co. We expect this to provide AFT with access to China’s offline retail and hospital segments, which represent roughly 75% of the country’s OTC market, a significant bump from AFT’s current Chinese e-commerce presence. This announcement comes on the heels of the news on Maxigesic Rapid securing a non-exclusive distribution partnership in the US with Alexso, a specialist distributor focused on non-opioid pain-management products. Given the notable size of both the US and Chinese markets, we expect these new market launches (both expected within CY24) to support top-line traction internationally.
Year end |
Revenue (NZ$m) |
PBT* |
EPS* |
DPS |
P/E |
Yield |
03/23 |
156.6 |
16.7 |
11.0 |
1.10 |
27.7 |
0.4 |
03/24 |
195.4 |
23.0 |
15.8 |
1.60 |
19.3 |
0.5 |
03/25e |
232.4 |
23.6 |
16.5 |
1.65 |
18.5 |
0.5 |
03/26e |
278.3 |
40.8 |
28.3 |
2.83 |
10.8 |
0.9 |
Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items, and share-based payments.
While AFT has an e-commerce presence in China under the country’s Cross-Border E-Commerce platform, Crystaderm’s approval (Q423) in China and subsequent distribution agreement with Hainan Haiyao pave the way for AFT to access the prime offline retail and hospital segments, representing a materially larger opportunity. Crystaderm is a 1% hydrogen peroxide formulation for the treatment and prevention of minor skin infections (for conditions such as acne, cuts, wounds, grazes and burns), which unlike other topical antibacterial treatments, does not carry any known risk of bacterial resistance. We view the impending launch of Crystaderm by partner Hainan Haiyao in the Chinese market (expected in H2 CY24) as an exciting development with potential to open the doors for other similar launches by AFT in the future. We note that Hainan Haiyao is a listed biopharma company in China (Shenzhen Stock Exchange SZ:000566) with a wide distribution network and a range of products spanning active pharmaceutical ingredients to novel drugs and medical devices.
Expanding its global footprint has been a long-term goal for AFT and it has been making steady progress in this area. In June 2024, AFT had announced signing a non-exclusive agreement with Alexso for the distribution of Maxigesic Rapid tablets in the US. This will be AFT’s second product to launch in the US, following Maxigesic IV in early 2024. We note that the distribution strategy for the rapid release tablets (approved by the FDA in March 2023) will differ from the hospital-focused IV formulation (exclusive partnership with Hikma), with AFT seeking multiple channel-specific partners to optimise the reach of the product. We note that in February 2024, AFT signed a long-term supply agreement with Microsize to supply micronised active pharmaceutical ingredients for the rapid formulation, which we expect will support a faster rollout in the US market. The US launch of Maxigexic Rapid (under the brand name Combogesic) is expected in H2 CY24.
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Research: Real Estate
Supermarket Income REIT’s (SUPR’s) high-quality, omnichannel-focused portfolio is very well positioned to benefit from strong growth trends in the grocery sector. Moreover, with supermarket property yields remaining elevated and interest rates widely forecast to decline, SUPR has begun to deploy available debt capital into accretive acquisitions to support further fully covered DPS growth. This includes a first investment in France, where, like the UK, online grocery sales are growing strongly.